The British Bankers Association (BBA) is today thought to appease critics over thoughts it has not done enough with a scheme aimed at appeasing Vince Cable.
The BBA are set to announce at it’s annual dinner tonight (22nd July) that it will publish business lending statistics in postcode format. This follows accusations that it has not done enough to influence Whitehall policy makers over bank lending schemes.
In short, it is accused of not doing enough to boost bank lending to businesses.
However is this a little short sighted?
The biggest thing to happen in the business finance sector during this recession is the growth of non-traditional lenders. Get ready for the great oxymoron ‘finance innovation‘ it ranks alongside ‘married life’ as the great oxymorons, but we think it actually has some credibility.
In the next 12 months Funding Circle expect to advance £400m of new money to SMEs, that is centred around the £10k-£100k unsecured bracket and aimed at SMEs.
In other words, the ignored majority
Our take here is that the BBA, Vince Cable, and the Whitehall greats that continue to talk about bank finance are a little guilty of sitting in the past.
If there are good lenders, lending to businesses on sensible terms and at sensible rates then support them, promote them and work with them.
Maybe a shot across the bows of the major banks is what is called for. For too long the ‘banks’ have sat together in safety. Maybe now is the time for the non-traditional lenders to come of age.
If this happens we could see a fundamental change in how businesses seek finance, a serious and credible alternative to bank finance that could force the banks to stop talking to businesses and start talking with them.
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